with china deteriorated. his government nationalized the senkaku islands in the east china sea. japan controls the territory. china and taiwan claim it. chinese ships enter japanese waters near the islands and chinese alleged anti-japan demonstrations. noda's key domestic policy issue was fiscal reform. he staked his career on hiking the consumption tax and reforming social security to chip away at japan's rising debt. the opposition liberal democrats and their allies helped him pass a package of bills after he promised to call a general election soon. but then noda added conditions. he wanted to enact legislation allowing the government to issue bonds defined as the current fiscal year's budget and he wanted to reform the electoral system. >> translator: if you agree to this condition i'm ready to dissolve the lower house on november 16th. please give your word to the people. >> reporter: that's what opposition leaders did. setting the stage for the election. >> prime minister noda is facing the biggest fight of his political life. nhk's latest opinion poll suggests kobe in trouble.